KBRA Assigns Rating to Junior Subordinated Notes Issued by The Fortegra Group, Inc.

KBRA assigns a rating of "BBB-" with Stable outlook to the 9.25% fixed rate resetting junior subordinated notes due 2064 ("Notes") issued by The Fortegra Group, Inc. (TFG) and guaranteed on a junior subordinated basis by certain subsidiaries of TFG, including Fortegra Financial Corporation (FFC). The rating on the Notes is primarily dependent on the long term issuer credit rating of FFC (KBRA Rating: BBB/Stable) as a guarantor for the Notes and the Notes' level of subordination relative to other obligations of FFC. The guarantee of the Notes ranks pari passu with FFC's outstanding junior subordinated notes due 2057 (KBRA Rating: BBB-/Stable).

Even though the Notes are not be a direct debt obligation of FFC, the company has provided an unconditional and irrevocable guarantee of TFG’s payment of interest and principal on the Notes. Therefore, KBRA considered the potential impact of the guarantee on FFC’s credit rating through a pro forma assessment of FFC's leverage and coverage ratios in the event the guarantee were to be utilized. KBRA views the potential impact on FFC's leverage and coverage as remaining in ranges supportive of FFC’s current issuer rating and the rating of the Notes.

TFG offers a wide array of products including commercial and personal lines property & casualty insurance policies, life and health insurance policies, payment protection products, motor club memberships, service contracts, device and warranty services, and administrative services to its business partners, including insurance companies, retailers, dealers, insurance brokers and agents, and financial services companies.

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